Cost Appraisal Not Appropriate
Hello fellow agents,
Please provide some feedback and assistance. I have a seller that purchased their home from their parents three years ago. They are getting ready to sell and want to use the appraised value from that purchase. Here in lies the problem, the appraisal was done on this 1967 home using a cost appraisal. The CMA I presented shows that the market value is lower by $60k. The bank is standing by the cost appraisal.
I've not had to educate sellers on this issue before. My explanation of how I did the CMA is understood, but they are sticking to the paper they've got from the bank. Have you had to deal with an issue like this? What suggestions or ideas do you have to help this seller realize the home was inappropriately assessed?
Additional info: Property is located in Central Washington. The home was built in 1967 in what was an orchard. The family has sold the land and in the last 7 years new homes have been built on the land. Half acre parcels are selling for $90,000 and homes are being built starting at $600k in the neighborhood. Subject property has not received any updates since construction.